Jazz Cola produces a lemon-lime soda. The production process starts with workers mixing the lemon syrup and lime flavors in a secret recipe. The company enhances the combined syrup with caffeine. Finally, the company dilutes the mixture with carbonated water. Jazz Cola incurs the following costs (in thousands) (Click the icon to view the costs.) Read the requirements Requirements 1, 2 and 3. Classify each of these costs according to its category in the value chain and further break down production costs into three subcategories: Direct Materials (DM). Direct Labor (DL), or Manufacturing Overhead (MOH). Compute the total costs for each value chain category. (If an input field is not used in the table, leave the input field empty, do not enter a zero.) Jazz Cola Value Chain Cost Classification Production Cost R&D Design Direct Materials Direct Labor Manufacturing Overhead Customer Marketing Distribution Service Plant janitors wages Truck drivers' waons Data table Plant janitors' wages .. $ 1,200 Delivery truck drivers' wages . $ 285 Payment for new recipe . $ 1,230 Depreciation on delivery trucks . $ 275 Plant utilities . $ 700 Lime flavoring . $ 920 Rearrangment of plant layout .. $ 2,000 Bottles .. $ 1,290 Salt $ 30 Sales commissions $ 250 Production costs of "cents-off" store coupons for customers . . $ Lemon evrun 630 $ 22.000 Print Done Read the requirements Cost Plant janitors wages Truck drivers' wages Payment for new recipe Depreciation on trucks Plant utilities Value Chain Cost Classification. Production R&D Design Direct Materials Labor Direct Manufacturing Overhead Customer Marketing Distribution Service Time Remaining: 02:50: Read the requirements. Plant utilities Lime flavoring Rearrange plant layout Bottles Salt Sales commissions Production costs of "cents-off coupons Lemon syrup Replace products with expired dates Time Remaining: (Click the icon to view the costs.) Read the requirements. DOLL CORK WROis the lowing costs (in thousands) Lemon syrup Replace products with expired dates Depreciation on plant and equipment Wages of workers who mix syrup Customer hotline Freight-in on materials Total costs Requirement 4. How much are the total product costs? Time Remaining Requirement 4. How much are the total product costs? Determine the formula, then calculate the total product costs. + Total product costs Requirement 5. Suppose the managers of the R&D and design functions receive year-end bonuses based on meeting their unit's target cost reductions. What are they likely to do? How might this affect costs incurred in other elements of the value chain? The managers of R&D and Design are likely to This can Select the answer that shows how cutting costs might affect other elements of the value chain. costs of later value-chain elements Requirement 5. Suppose the managers of the R&D and design functions receive year-end bonuses based on meeting their unit's target cost reductions. What are they likely to do? How might this affect costs incurred in other elements of the value chain? The managers of R&D and Design are likely to This can coats of later value-chain elements Select the answer that shows how cutting costs might affect other elements of the value chain. OA. If the recipe is not adjusted to consumer tastes, more marketing may be required and/or sales may decline. B. If cutting R&D and Design costs leads to lower quality soda, customer service costs such as returns bay also increase C. If the recipe is not designed so the soda is easy to produce, or if the production process is not well laid-out, production costs will be higher than they need to be. OD. All of the above Data table Next question Rearrangment of plant layout Bottles Salt Sales commissions $ 2,000 .... $ 1,290 $ 30 $ 250 Production costs of "cents-off" store coupons for customers .. $ 630 Lemon syrup Replacement of products with expired dates upon customer complaint Depreciation on plant and equipment Wages of workers who mix syrup Customer hotline Freight-in on materials .... $ 22,000 . $ 35 $ 2,700 $ 7,700 $ 170 $ 1,000 Print Done